Are Millennials and Gen Z priced out?

In this episode of Insights Now, JPMorgan Asset Management strategists Jack Manley, Jordan Jackson, and Katie Korngabel explore the financial struggles faced by millennials and Gen Z in the United States. The conversation centers on how younger generations are experiencing a profound sense of economic anxiety, driven by soaring costs in housing, education, and healthcare—categories that now consume nearly 40% of household spending, up from 15% for previous generations. Despite being the largest consumer cohort and driving spending growth at unprecedented rates, younger Americans are financially constrained, with stagnant wage growth, rising student debt, and a housing market that has become increasingly unaffordable. The hosts highlight how these challenges are compounded by structural inequities, with Black and Hispanic households significantly underrepresented in homeownership and stock ownership. Yet, paradoxically, younger consumers are still spending—particularly on experiences, health and wellness, and value-driven purchases—fueling growth in sectors like fast casual dining, travel, and niche consumer goods. The episode also examines how generational investment experiences differ: millennials, shaped by the 2008 crisis and pandemic, are more risk-averse, while Gen Z, who’ve only known bull markets, exhibit higher risk tolerance, leading to increased interest in crypto, day trading, and speculative investing. Despite this, the hosts emphasize that human connection remains vital in financial advising, as younger investors still seek trust and guidance from professionals.